South Korean crypto volume falls 89% as stocks rally

Trading volumes on South Korea's major cryptocurrency exchanges have plummeted over the past year, coinciding with a historic surge in the country's stock market, according to data analysis and financial reports. The dramatic shift suggests retail investors are reallocating speculative capital from digital assets to equities, particularly semiconductor and artificial intelligence stocks.

An analysis of CoinGecko data for the five largest won-based exchanges-Upbit, Bithumb, Coinone, Korbit, and Gopax-shows a severe contraction in activity. Comparing seven-day periods in July 2025 and July 2026, the average daily volume across these platforms fell by approximately 77% on an unweighted basis. On a combined basis, total average daily volume dropped about 89%, declining from $2.82 billion to $305 million. Separate reporting from ZDNet Korea indicated daily volume was down 88% year-over-year as of July 20.

This collapse in crypto trading activity stands in stark contrast to the performance of South Korea's benchmark stock index. The Korea Composite Stock Price Index (KOSPI) rose 114.44% over the 12 months ending July 22, 2026, even after retreating from a peak above 8,800 in June. The...